RESEARCH AND DEVELOPMENT

Behind the scenes of product development at & Sprüngli

Behind the successful products of the Lindt & Sprüngli Group are experts who are continually expanding the product range to delight consumers with new delicacies. The leading products Lindor, Excellence as well as seasonal products such as the famous Gold Bunny are nowadays among the most popular classics worldwide.

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ORIGINAL SWISS

The secret original chocolate recipes and Swiss expertise still make up the fine and important difference

The secret original recipes behind the The exquisite cocoa mixtures, the basic products of the same standardized and fine Swiss chocolate are the key to the recipes for the unique milk, dark and high quality with the distinctive Lindt company’s global success and form the white and the delicate Lin- taste sensation. On the basis of these basis for all product development efforts dor recipe were developed by the par- one-of-a-kind basic recipes and exper- of the Lindt & Sprüngli Group around ent company in Kilchberg. To this day, tise available, local subsidiaries work the world. From the very beginning, it still preserves and is responsible for closely with their marketing experts to Lindt & Sprüngli has been synonymous this strictly guarded chocolate secret. adapt the chocolate products to the As well as these basic recipes, particular needs of the market and “As the parent company, we take production and process ex- country-specific taste preferences. By pertise is also of utmost im- sharing the responsibility in this way, responsibility for ensuring that portance. These start with the parent company ensures a consis- every product complies with the patented procedures for pre- tent and high quality as well the flaw- Swiss quality guarantee and the paring cocoa beans, the less processing of all Lindt products strict Lindt standards.” unique roasting and grind- across the world, regardless of where ing processes, and the ways they are produced. With this central- Guido Steiner, Group Management Member in which the chocolate is ized quality guarantee as the seal of conched and shaped. The quality of the Lindt brand, the parent with an extremely exquisite and intense parent company defines these basic company is responsible for making taste sensation. This is the very reason recipes and processes for Lindt sure that every Lindt product is pro- co ­­­nsumers around the world love & Sprüngli around the world and con- duced in line with the same strict Lindt and appreciate Lindt & Sprüngli’s top- ­ tinues to develop them to produce standards. quality chocolate products.

R & D FACTS

500 DEVELOP- More than 66% MENT women in senior management positions PROJECTS in R & D 9,000 MAIN brands in over 170 countries are registered by the FUNCTIONS Lindt & Sprüngli Group. 1. Product development 2. Packaging development Several hundred 3. Process technology projects are in the 4. Sensor technology long-term pipeline 5. International food law around the world. 6. Quality management and safety ANNUAL REPORT 2018 RESEARCH AND DEVELOPMENT — 61 Stefan Schmid

STEFAN SCHMID

LINDT & SPRÜNGLI, INTERNATIONAL Kilchberg,

Research and development is of great ing your strategy with them. Stefan to initiate improvements and new importance for Lindt & Sprüngli in or- Schmid assumed this task as Head of developments. The partnership with der to maintain the uncompromising Corporate R & D at the end of 2018, the Lindt Chocolate Competence Foun-­ commitment to high Swiss quality after 15 years in various R & D roles in dation presents a particular highlight. standards and the innovation pace of the Lindt & Sprüngli Group. His core In their Competence Center, the Lindt the whole Group in the long run. In activities are to ensure standardised Home of Chocolate, a pilot plant is be- addition to the continuous research at use of the basic chocolate recipes and ing built at the Kilchberg site for re- the head office to further develop the process expertise provided to the search and training purposes. Stefan Lindt basic recipes and processes, eight subsidiaries by the parent company Schmid’s team will coordinate the local teams enrich the Lindt & Sprüngli and to research into their continuous activities of this pilot plant as well as product world with innovative choco- development. In addition to this task, those of a second pilot plant at the late ideas and delight consumers of the he coordinates the local product devel- Olten site and, in particular, drive the Lindt brand as well as Ghirardelli, Rus- opments with a global impact in close development of the basic recipes and sell Stover, Caffarel, Hofbauer and cooperation with the marketing processes to actively create knowledge Küfferle. As a successful premium team. This particularly involves fur- for Switzerland as a hub for chocolate brand producer, Lindt & Sprüngli con- ther developing the product range and innovation. tinuously faces new challenging market of the leading brands Lindor and Ex- requirements and changes along the cellence. The enhanced international entire value chain – from the cocoa part­nership and transfer of knowledge bean right through to the finished on various developments are of utmost product. To this end, the company fol- importance in this respect. As well as lows a global R & D strategy that sup- heading up these internal projects, ports its long-term success. An im- Stefan Schmid coordinates research portant part of this is knowing your projects with the development de- own strengths as well as the needs of partments of universities. He uses the the global and local markets and align- knowledge he acquires from these

LINDT & SPRÜNGLI MAÎTRE SUISSE DEPUIS 1845 LINDT & SPRÜNGLI PRODUCT CYCLE

A 360 ° view of product development right through to a true chocolate indulgence

Consumers – Point of Sale Chocolate fans from all over the world plunge into the exceptional premium world of Lindt & Sprüngli and enjoy the exquisite creations with all five of their senses. 11.

Packaging Development C on The teams of packaging designers produce s um exceptional and high-quality designs for er chocolate creations that turn the chocolates N e e into a treat for the eyes as well as the mouth. d 10. s

Sales Staff The sales staff coordinate and foster Lindt & Sprüngli’s customer relationships in order to offer consumers a unique chocolate experience at the point of sale. 9.

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LINDT & SPRÜNGLI MAÎTRE CHOCOLATIER SUISSE DEPUIS 1845 Master – Product Developers With a great deal of passion and utmost care, the product developers produce exquisite chocolate 1.creations to delight consumers all over the world. Product Managers – Marketing The tasks of the product managers range from C developing chocolate products with the product on s developers through to launching new products um and managing the brand. er N e e d 2. s Technologists Process technologists work closely with product developers to implement their handcrafted products in the same high quality in production using the specified Lindt & Sprüngli 3. process expertise. Mould Makers Lindt & Sprüngli’s product range always calls for creative solutions from its mould-making partners to always meet the numerous expectations for 4. chocolate moulds. Plant Engineering

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n o C Production Staff Chocolate is their passion. Lindt & Sprüngli’s production staff are fully dedicated to 6.manufacturing refined chocolate creations.

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URSULA BURI

LINDT & SPRÜNGLI SCHWEIZ Kilchberg, Switzerland Ursula Buri Ursula Buri has been successfully thisUrsula main area. The product managers Buri leading the product development and incorporate the far-reaching know­ quality assurance in Switzerland for ledge from market research, the re- almost 20 years. The team comprises sults of test panels and the expertise Lindt Master Chocolatiers (product of internal sensory specialists direct- developers), technologists who put ly into product development. In addi- the Lindt procedures into practice tion to classic product development, and experts responsible for quality Lindt & Sprüngli has also been relying assurance and management. All on the open innovation platform, product developments are based on which is headed by Master Chocolatier the strictly guarded, secret chocolate Stefan Bruderer, since 2014. This is recipes that distinguish Lindt choco- where numerous ideas, from interna- lates and make them unique. The tional chocolate trends and expertise needs of the consumers are always at from external industries through to the heart of product development. It internal marketing innovation work- is therefore extremely important for shops are bundled and analyzed. The Lindt & Sprüngli to work closely with craftsmanship of the Master Choco- local marketing teams to always meet latiers and their teams is and always the consumers’ requirements exactly. will be the start of every development When developing products, Ursula since the masterpieces are always cre- Buri focuses on two areas to ensure a ated by hand first. well-filled pipeline for innovative chocolate products over the long term. Of course, these meet the high Swiss quality stan- dards and make Lindt & Sprüngli the undisputed “The Swiss team fully no. 1 in the premium seg- ment. supports the high Swiss The traditional develop- ment process starts with a quality requirements of creative team made up of Master Chocolatiers, prod- the entire Group.” uct managers and technol- ogists. The Master Choco- Ursula Buri latier Urs Liechti manages

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How would you explain the the smooth-melting core and intense it also the challenges and demands enormous success enjoyed by moment of joy. placed on the product development the Lindor brand, which will What has changed about R & D in team, which has to meet the diverse turn an impressive 70 years old Switzerland in almost 20 years? taste preferences of consumers in the in 2019? The focus of development work has international markets. I think Lindor speaks to all five changed considerably over recent de- Which project do you think has senses. Starting with the crackling cades. In Kilchberg, almost 90% of had the greatest impact on the of the packaging, the unveiling of what we produce nowadays is exported Group? the glossy Lindor truffle, the smell of worldwide and our Swiss premium We will be substantially increasing the chocolate, the first bite into the chocolate reaches over 100 countries. our capacity for cocoa mass produc- crisp chocolate shell, all followed by The relationship has reversed and with tion in Olten in 2019. Olten is partic- ularly important for Lindt & Sprüngli as it supplies the production compa- nies in Italy and Germany with cocoa mass. The Swiss site thus plays an even more important role in ensuring the strictly guarded mixing ratio of the cocoa beans and also compliance with the parameters for the roasting process, which are also specified by the parent company. ANNUAL REPORT 2018 ANNUAL REPORT 2018 RESEARCH AND DEVELOPMENT — 66 RESEARCH AND DEVELOPMENT — 67

PATRIZIA PIROTTA

LINDT & SPRÜNGLI ITALY Induno Olona, Italy

Patrizia Pirotta Patrizia Pirotta

Product development at Lindt product development. Italian choco- most in their blood and it is not sur- & Sprüngli in Italy has been shaped late lovers are generally very quali- prising that a combination of the fin- by Patrizia Pirotta for more than 33 ty-conscious and have a significant est Lindt chocolate with a crunchy years now. Her team of Master Choc- preference for premium products. coating of the best Piedmont nuts has olatiers, technologists, and sensory Next to the Lindt Gold Bunny, Lindt proven so popular. The successful specialists combines their passion for Noccior is one of the best-sellers in Noccior product has been further re- chocolate with the pleasure of finding Italy at Easter. The large chocolate fined under the direction of Patrizia new solutions every day for the chal- Easter egg with Piedmont nuts has Pirotta and is now available in Italy lenges posed by product develop- delighted consumers since 1970 and in six different varieties with milk ment. The team integrates local con- has sold more than 10 million since chocolate, dark and white Lindt sumers’ needs and trends that then. As we all know, the best hazel- chocolate. Patrizia’s favorite, howev- correspond to the pronounced pref- nuts in the world come from Italy. er, is and remains Noccior with Lindt erences of the Italian market into The Italians’ love of hazelnut is al- .

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FRANCO MINGARDO

CAFFAREL ITALY Luserna San Giovanni, Italy

Franco Mingardo has been in charge late products must always meet the among Italians who love the small, of product development at Caffarel high demands of the Italian market bite-sized nougat pralines. With his near Turin, Italy's famous chocolate for constant and creative innovation team, ­Franco Mingardo has now de- capital, for 20 years now. Working and quality. Gianduia is a product veloped more than ten different choco- closely with the internal marketing that perfectly unites the typical Italian late and flavor variants of the classic, specialists, the team is developing the taste of fine dark cocoa with Piedmont which delight the whole of Italy. finest chocolate products with a focus hazelnuts from the Langhe. Since the on exquisite Italian ingredients, such birth of the Gianduiotto for the Turin as the fine hazelnuts from Piedmont, Carnival in 1865, it has stood for pure and true craftsmanship. The choco- Italianità. It is the absolute favourite

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GABY GILGENBACH

LINDT & SPRÜNGLI DEUTSCHLAND Aachen, Germany

Gaby Gilgenbach Gaby Gilgenbach Gaby Gilgenbach has held manage- chocolate enthusiasts, although the ment positions in Lindt & Sprüngli in trend towards has in- Germany for more than 25 years and creased significantly in recent years has headed up the department for here too. The range of the interna- 10 years. The Lindt brand stands tional Easter star, the Gold Bunny, for superior quality and a unique range reflects this with 15 different varieties of products. The aspiration of Lindt in designs that are more and more & Sprüngli Germany is and remains to surprising every time. If you ask Gaby continually maintain this level and de- Gilgenbach about her true favourite light consumers in a saturated market among them, she’ll say it is and al- time and time again with an exciting ways will be the Gold Bunny with range of products. The visual experi- Lindt milk chocolate. ence of the brand also plays a decisive role in this respect. It underlines the aspirations for the product and makes Lindt something extra special again and again. Lindt is present on the German market with a very broad range of chocolate. This gives the entire team a great deal of creative freedom when further developing the fine packaging, unusual shapes and delicate fillings and nev- “We’re working on ensuring er lets the fascination for chocolate fade away. Germa- Lindt chocolate is always ny is the home of the Gold Bunny and the entire hol- something extra special.” low-figure production for the Lindt & Sprüngli Group. Gaby Gilgenbach Like Switzerland, Germa- ny is a country of milk

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What is the greatest challenge What is special about your team? What role does sustainability in your job? As well as the traditional roles, my play in Germany? The greatest challenge is constantly en- team has its own packaging develop- Our consumers are paying more and suring Lindt quality along the entire ment department. Thanks to our close more attention to all aspects of sustain- value chain, from the raw material right partnership with the marketing team, ability. The Lindt & Sprüngli Group is through to the completed product, and we are also able to pick up on market already doing a great deal for sustain- keeping it at the highest possible level. developments at an early stage and in- ability at the source in the cocoa-grow- tegrate them into our product develop- ing countries with its Lindt & Sprüngli ment. The internal creative team is also Farming Program. Our commitment an important success factor and one to sustainability applies along the en- that strengthens the brand’s refined tire value chain. Issues such as sustain- design and makes it unique time and able raw materials and recyclable pack- time again. aging are important to us. ANNUAL REPORT 2018 ANNUAL REPORT 2018 RESEARCH AND DEVELOPMENT — 70 RESEARCH AND DEVELOPMENT — 71

2,523 PRODUCTS

Lindt & Sprüngli embraces the Swiss right through to the latest technology innovative spirit and passion for in production. Innovation encompass- high-quality chocolate in all areas of es a 360 ° vision that affects all Lindt the company. Starting with the selec- & Sprüngli divisions. In almost 175 tion of the finest cocoa beans, the years, the worldwide teams of experts high-quality raw material, continuous that have been formed have created a product innovations and the high unique product world for exquisite standards for quality and production premium chocolate.

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SARAH KELLER

LINDT & SPRÜNGLI USA Stratham, USA ANNUAL REPORT 2018 RESEARCH AND DEVELOPMENT — 73

How does the US taste differ to that of Europe? As well as the importance of pepper- , the nut taste is also different from that in Europe, where hazelnuts and walnuts dominate the chocolate scene. In the US, however, it is mainly peanuts, almonds and pecans. We Sarah Keller have recognized these nut preferences and implemented them very success- Sarah Keller has been responsible for fully with the development of Lindor product development in the world's Butter Pecan. largest chocolate market for ten years. What important projects are At almost 30 years of age, Lindt USA is planned for the coming years? still a young production site in the On the basis of the successful develop- Lindt & Sprüngli Group compared to ment in recent years, the decision was those in Europe. Like in Switzerland, made to invest in the expansion of the the production team in Stratham has production lines and the cocoa mass its own cocoa mass production facility. plant in Stratham. The planning and The cocoa mass is produced with the implementing of the expansion will specifications of the mixing ratio of continue to keep me and my team very the cocoa beans strictly guarded by the busy over the next few years. We are parent company as well as the roasting looking forward to helping to shape and processing method it has also pro- the successful future of Lindt USA. vided. This allows the company to pro- What other exciting challeng- duce chocolate from “bean to bar”. es will the US market bring for Sarah Keller’s team is made up of Lindt & Sprüngli? product developers, technologists, The US market still has huge potential sensory specialists, quality managers, for Lindt & Sprüngli as, although con- and the Consumer Service. With her sumers used to have a preference for team, Sarah Keller develops innova- sweet milk chocolate, they are now in- tions for a market known for its tre- creasingly discovering premium choc- mendous speed and constant change olate. Enthusiasm for Lindt’s high-qual- and one that requires a high degree of ity chocolate products is continuing to flexibility. The chocolate taste in the grow. We get good feedback from con- US differs substantially to that to the sumers who try our products handed traditional European markets and is out as samples and are won over by the more like the recipes that are success- “Lindt Difference”. ful in England. For example, Lindor with peppermint, which com- bines dark chocolate with an unrivalled minty freshness, is “The challenge of convinc- very popular. Chocolate with notes of peppermint is a tradi- ing the US of the ‘Lindt tional taste sensation espe- cially in the seasonal business Difference’ of our premium around Christmas. The limit- ed Christmas editions of Lin- products is one that dor White Peppermint and the new Lindor Peppermint inspires me day after day.” Cookie were a great success with consumers in the US. Sarah Keller

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STEVE GENZOLI

GHIRARDELLI CHOCOLATE COMPANY San Leandro, USA Steve Genzoli

Steve Genzoli has been in charge of “bean to bar”. The focus was on maxi- ous development of the classic Ghirar- product development at the Ghirardel- mum product quality even in the days delli square with its ever new fillings li Chocolate Company, the US’s oldest of the founding fathers – it was never a plays a particularly important role in chocolate business, for 20 years now. trending topic. The brands Lindt and delighting consumers in this respect. Nowadays, a team of product develop- Ghirardelli harmonize the best on the To this day, the Ghirardelli squares ers, technologists, sensory specialists, US market and enrich one another. with milk chocolate and a creamy car- food law experts and packaging de- Developing products that delight con- amel filling are the best-sellers among signers develop the Ghirardelli prod- sumers in the fast-moving US market the numerous varieties of the squares uct landscape. Just like Lindt, Ghirar- is and will always be a great challenge and make the life of consumers in the delli also produces its products from for the Ghirardelli team. The continu- US “a bite better”.

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Jill Beveridge

JILL BEVERIDGE

RUSSELL STOVER Kansas City, USA

Russell Stover has been part of the works closely with the marketing praline in the well-known leading Lindt & Sprüngli Group since 2014. team to incorporate market needs product, the “Bowline”. The modified The traditional brand, known for its into the product development process composition of the praline assort- “Bowline” praline packaging which at an early stage. One of the first suc- ment and the new design have already rose to fame in the global cinema suc- cesses of this partnership was the fur- received great feedback of the trade cess of “Forrest Gump”, has since ther development of the -free and will be launched in early 2019. changed its focus in product develop- product line. This will allow Russell For Jill Beveridge, this development ment. Research into consumer needs Stover to hold pride of place in this project is proof that product develop- has increased in importance. Since category for years to come. On the ments are always most successful 2018, Jill Beveridge has been heading basis of recent market studies and when they delight consumers, trade, up Russell Stover’s product develop- consumer tests, the team also opti- and the brand. ment department. This department mized the range, size and flavor of the

LINDT & SPRÜNGLI MAÎTRE CHOCOLATIER SUISSE DEPUIS 1845 ANNUAL REPORT 2018 RESEARCH AND DEVELOPMENT — 76 Muriel Fery

MURIEL FERY

LINDT & SPRÜNGLI Oloron-Sainte-Marie, France

The Lindt & Sprüngli France team has chocolate, which naturally also aligns France has been further developing a been developing products for the with the increased demand for less sug- wide range of Excellence bars to suit French market for 13 years under the ar. In the rest of Europe, on the other local tastes, which delight the discern- direction of Muriel Fery. French con- hand, only 5% of consumers seek the ing French connoisseurs of an intense sumers are very quality-conscious and particularly intense cocoa experience. chocolate taste. With sales of well over enjoying good food also is a very im- Since 1989, the team in France has been half a billion in France, the enormous portant part of their everyday lives, continuously developing the Excel- success of the Excellence bars is testa- which also has an effect on the choco- lence product line, whose recipe is ment to the focus of the development late market. In Europe, France estab- based on the “Surfin” recipe. This is work in France. However, if Muriel lished itself as a market with a prefer- provided by the Chocoladenfabriken Fery had to decide on one recipe, the ence for chocolate with a high cocoa Lindt & Sprüngli in Switzerland and is Excellence bar with a 78% cocoa con- content at a very early stage. Nowadays, based ’s original recipe tent would be her ultimate favorite. almost 30% of consumers prefer dark for dark chocolate. To date, the team in

LINDT & SPRÜNGLI MAÎTRE CHOCOLATIER SUISSE DEPUIS 1845 PRODUCT DEVELOPMENT AT LINDT & SPRÜNGLI – THE SOURCE OF OUR INNOVATIONS

Since 1845, Lindt & Sprüngli has stayed true to its core business and has been developing the finest chocolate using only high-quality raw materials. In Switzerland, every development starts with a team of confectioners who use traditional craftsmanship to create new products with Lindt’s basic chocolate recipes in the product development department in Kilchberg. ANNUAL REPORT 2018 RESEARCH AND DEVELOPMENT — 78

“A box of pralines should be like a Picasso painting – it has to delight people.” Urs Liechti, Master Chocolatier

Making a praline is one of the most and consumer surveys, the Master An entire team of confectioners devel- challenging tasks for a product devel- Chocolatiers continuously develop the ops the new praline using traditional oper. It involves all departments of traditional praline range for Lindt. craftsmanship in the product develop- product development working togeth- The chocolate recipes are refined and ment department in Kilchberg. Behind er until the chocolate delights con- new flavors and shapes developed every Lindt praline is a careful ap- sumers at the point of sale. The devel- to meet local preferences. Never- proach, bold attempts and a great deal opment process of every product starts theless, all product developments are of love for detail on the part of the with the product developer and prod- always based on Lindt’s exquisite, Master Chocolatiers. It can take up to uct manager discussing the latest find- well-­protected original recipes. Lindt two years before fans can get hold of ings with regard to consumer needs in & Sprüngli produces the finest pralines the crowning glory of chocolate treats depth. On the back of these studies using only high-quality raw materials. – a new box of pralines.

The two Master Chocolatiers Urs Liechti and Julia Derungs masterfully making the praline Amande de Luxe in Kilchberg, Switzerland. The preparation process starts with the creation of a delicious almond nougat filling. After the filling has been cooled, the basic oval shape of the praline is cut out of the mass and carefully coated with the mass at a temperature of 30 ° C. Highly focused, Urs Liechti decorates the pralines, which are freshly coated with fine Lindt chocolate, with a hint of light milk chocolate.

With the carefulness of a Master Chocolatier, he places the roasted almonds, coated in fine sugar, on each praline. For the grand finale, the bottom of the Amande de Luxe is dipped into a bath of dark “Surfin” chocolate. The Master Chocolatiers see the Amande de Luxe as one of the most demanding pralines in the Lindt world.

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The quality of the cocoa beans is checked multiple times. Only the best cocoa beans are approved and make their way into production.

The guillotine test is used to evaluate various different quality parameters of the cocoa beans.

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“Lindt & Sprüngli has always been synonymous with the production of the finest chocolate products with high-quality raw materials”. Stefan Bruderer, Master Chocolatier

In Switzerland, quality assurance in Kilchberg defines the high quality standards applied to chocolate products and product safety. High- level and consistent company hygiene in all pro- duction sites is strictly adhered to when making chocolate. Employees ensure Lindt & Sprüngli’s high-quality promise through extensive microbi- ological, chemical, physical and sensory tests that follow production from the raw material right through to the finished product. The first tests are already underway, with sensory tests to describe the profile in the country of origin so that consumers can always enjoy the Lindt experi- ence to the fullest.

Vanilla is one of the most expensive spices in the world. The experts assess the quality of the vanilla pods with a variety of tests.

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“Implementing our global quality strategy guarantees that our high demands are ensured at all production sites.” Adrian Gisler, Head of Quality, Lindt & Sprüngli International

Alongside these tests, sensory tests using all five senses also accompany the selection of cocoa beans and the entire production process through to the finished product. Additional tests are also carried out during the early stages of cocoa mass production in Olten and in the logistics center in Altendorf in order to fully ensure the high quality standard.

Raw materials and semi-finished products are tested for any contamination using gas chromatography analyses.

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Tests to determine the degree of crystallization of the . This is an important quality parameter for subsequent chocolate production.

Incoming raw materials, semi-finished products and finished products undergo microbiological tests before they are released for further processing.

In this way, the team in Switzerland guarantees that the product safety standard is state-of-the- art for the entire supply chain, from supplier to consumer. International food law experts in the department also play an important role in this respect. They are experts on the food laws in Switzerland and in the markets supplied from Switzerland, ensuring the marketability of all products.

The samples are checked under the microscope for possible contaminants.

LINDT & SPRÜNGLI MAÎTRE CHOCOLATIER SUISSE DEPUIS 1845